INTRODUCTION

The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth. In the wake of liberalization as the economy opens up more and more international brands of chocolate are entering into the Indian Market giving rise to competition. Gone are the days when the chocolates were considered to be a luxury item only to be consumed by the rich people. The chocolates appeal to all the classes irrespective of age, sex or status. There is intense competition between the chocolate companies and with the reducing shelf space and increasing customer knowledge only those companies who market their chocolates as well as advertise and package them will have a chance to survive in the market. The studies have shown that most of the time chocolate buying is an impulse action i.e. when one sees the chocolates on the shelf of the shop so, it is very important for the manufacturer to package them attractively In the recent years Chocolates have been positioned as a thing which can be eaten by each and everyone. Especially children who have become great market for chocolate makers. Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Its core purpose is to "make today delicious" which captures the spirit of what it is trying to achieve as a business. Considering all this the following project includes "A brief description of Chocolate Industry with Special Reference to Cadbury India". It is a sweet CHOCOLATE story in the hot and humid plains of INDIA. The project also covers a brief study of Cadbury India Limited the biggest player in the Indian Chocolate Industry with reference to its presence, market share, product offerings, marketing strategies, strengths & weaknesses, success factors. Also, the implication of pricing, distribution strategies and impact of external environment has been recorded.

PROJECT OBJECTIVE
This project aims at understanding the overall Chocolate Industry in India, various factors affecting the growth and success of Cadbury in India, the challenges and opportunities which the market offers and the changing trends of Cadbury India. Our main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. For this purpose we have taken up the following analysis: SWOT Analysis PEST Analysis

The 4 Ps of Marketing: Product Place Price Promotion

We have also explained the segmentation, targeting and positioning strategy of Cadbury in India with respect to its competitors.

RESEARCH METHODOLOGY
Research Methodology involves in depth study related to the subject concerned. Our prime concern here is Cadbury and its comparison with the existing competitors in the market. The research methodology adopted is based upon two kinds of data- primary and secondary. Primary data includes recent and accurate piece of first hand information could be collected. The Secondary data on the other hand supports the primary data. The primary data was collected using the following methods: Questionnaire Method Observation Method

The observation method was a subpart of the questionnaire method; the questionnaire prepared for Cadbury was the main tool for extracting information. Procedure of research methodology: Target geographic area was Delhi, NCR. The sample size taken was 100 respondents. The Sample taken is between the age group 15-30.

Finally the collected data and information was analyzed and compiled to arrive at a conclusion and recommendations given. Some secondary sources included: Internet Magazines Newspapers

CHOCOLATE INDUSTRY: PAST & PRESENT

Chocolate was originally consumed as a spicy drink in Central America, called xocoatl, and was largely restricted to the upper strata of the society. It became a mass product with the industrial revolution, which made chocolate widely available by simplifying and mechanizing its production. In modern times, joseph fry was the first organised producer and retailer of chocolate on a large scale when he opened a chocolate factory at Bristol, England called J.S Fry & Sons in 1780.

They discovered a way to mix melted Cocoa Butter back into Dutch powder to create a gooey mass which could be moulded: the first bar Chocolate. In 1821, the English chocolate maker Cadbury produced the first dark chocolate. In 1876, Daniel Peter built a factory in Switzerland that was the first to produce milk chocolate using milk powder. In 1879, Daniel Peter partnered with Henri Nestl (the inventor of condensed milk) to found the firm Nestle. In 1919 the fry company merged with Cadbury Brothers.On the other side of the Atlantic, In 1900 Milton Snavely Hershey began producing milk-chocolate bars and "kisses" with great success. He even encouraged the US army to add 4 Hershey bars to each soldiers daily ration during the First World War. In 1932 Forrest Mars introduced the Milky Way Bar chocolate. Interestingly, many of the chocolate companies in the late 19th century, including Hersheys & Cadbury, were based on religious ideals of abstaining from alcohol. Chocolate was seen as an acceptable substitute!

ENTRY OF CADBURY & NESTLE

Back home, Cadbury entered Indian market in 1948 by importing chocolates. In 1965 it started its own cocoa cultivation in India and now has 6 manufacturing facilities in India. Cadbury has dominated the Indian chocolate market since independence with as high as 85% share in the early 90,s. The march was slowed down by the entry of another multinational NESTLE. In 1990, Nestle entered into chocolate business by introducing Nestle premium chocolates. Nestle entered into an agreement with Central Arecanut and Cocoa Marketing and Processing Co-operative Limited or CAMPCO for manufacture and supply of bulk quantity chocolates and cocoa products and made a dent into Cadburys market share through its various brands like Kit Kat, Bar One etc.

ANALYSIS OF CHOCOLATE INDUSTRY IN INDIA

Overview
The chocolate industry in India as it stands today is dominated by two companies, both multinationals. The market leader is Cadbury with a lion's share of 70%. The company's brands (Five Star, Gems, Eclairs, Perk, Dairy Milk) are leaders in their segments. Till the early 90s, Cadbury had a market share of over 80%, but its party was spoiled when Nestle appeared on the scene. The latter has introduced its international brands in the country (Kit Kat, Lions), and now commands approximately 15% of the market share. The Gujarat Co-operative Milk Marketing Federation (GCMMF) and The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited or CAMPCO are the other companies operating in this segment. Amul has entered the market, but it is a relatively new entrant and has a very small market share (5%). Competition in the segment will get keener as overseas chocolate giants Hershey's and Mars consolidate to grab a bite of the Indian chocolate market. The per capita chocolate consumption in India is 300 grams, which is still rather miniscule when compared to some of the developed markets-like the United Kingdom with 1.9 kgs. However, Indians swallowed 22,000 tonnes of chocolate last year and consumption is growing by 10 to 12% annually.

Up till 1990, the demand for chocolate was minuscule. In the last 3-4 years, it has risen and a number of individual-run chocolate brands are fuelling consumption. The industry can grow by 100 times in 4-5 years, a cocoa trader in Mumbai said The Chocolate market in India is currently estimated at 1500 crores. Growing at a rate of almost 18-20% per annum, the chocolate market in India is becoming one of the major industries in the country. India produces almost 30,000 tons of chocolate products annually.

COMPANY ANALYSIS
THE LEGEND CALLED CADBURY 1800s -1890s -The foundation of Cadbury Limited was laid down by John Cadbury in 1824 as a small business, which is today one the worlds largest producer of chocolates. Soon the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. In 1861 John Cadbury handed over the business to his sons who after much trouble continued manufacturing chocolates. The year 1866 saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. The company than expanded my opening up a new manufacturing unit in Greenfield which was some miles away from Birmingham. 1900s present- Cadbury launched many famous brands with one of major success story being Cadburys Dairy Milk chocolate launched in 1905. Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most advanced processing technology and management information and control techniques. Cadbury even continues to grow in India as one the biggest chocolates brands.

SWOT ANALYSIS
Strength(S): 1. Very strong brand equity in India with one of the best distribution system in India. 2. In chocolate consumption Cadbury has 80 % market share with rich product mix. Weakness (W): 1. Poor technology in India compared to current international technologies. 2. Only one central brand (CDM) with little rural penetration. Opportunities (O): 1. High population gives scope of high consumption. 2. Increasing per capita income resulting in higher disposable income. 3. Increasing gifts cultures. 4. To substitute Mithais having higher calories/cholesterol.

Threats (T): 1. Rise in the cost of chocolate and dairy products. 2. Entry of many foreign players in the Indian Confectionary market, which are giving higher market to the retailers. 3. The company has large exposure to foreign currency exchange rate risk

PEST ANALYSIS
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. The model's factors will vary in importance to a given company based on its industry and the goods it produces. Political (P): No directly affecting political effects are envisaged at present or in near future. But like every other company, there are many potential threats like new monetary policy, change in excise laws etc. which are beyond the scope of control of the whole industry. Economic (E): 1. Increasing per capita income resulting in higher disposable income. 2. Growing middle class/urban population increase in demand. 3. Low cost of production better penetration. Social (S): 1. Per capita consumption expected to increase fashion. 2. Increasing gifts culture increase in demand. 3. Lower cholesterol than mithais substitute demand. Technology (T): In this era of globalization, technology is improving at a neck-break speed. Cadbury would have to improve its technology to international levels to constantly grow in India.

4 Ps OF MARKETING
Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline. Product: The average company will compete for customer by conforming to his expectation consistently. But the winner will surpass them by constantly exceeding his expectation, delivering to his door step additional benefits which he would never have imagined . Cadburys offer such product. The wide variety products offered by the company in India include:

Chocolates & Confectionaries: Dairy Milk, 5 Star, Perk, Celebrations, Eclairs, Gems Beverages: Bournvita Candy: Halls Biscuits:Oreo

Pricing: Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Rs. 15; Perk Rs. 10; 5 Star Rs. 10;Fruit and Nut Rs. 22; Gems Rs. 10; Break Rs. 5; Nutties Rs. 18; Bournvita (500 gm) Rs. 104; Drinking chocolate Rs. 50 Place: The fundamental axiom of Indian consumer market is this: You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you should know how to sell your products. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. India 1 billion population for consumption, and the marketer who can get to the consumer ahead of competition will give a hard to overtake lead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport and communication network. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed mini fridge at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heat affects product quality and thereby off takes. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. Promotion: The strategic response addresses the emotional appeal of the band to the child within the adult. Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unselfish conscious, pleasure seeking child within him and graft these feeling onto the Ad campaign like Khane Walon

Ko Khane Ka Bahana Chahiye for CDM and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the audience,Too To Share the communication resolves around the reluctance of a person whos got their hand on a bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads, ad agency contract has created communication for cinemas and even ATM machines for the brand. Since any discussion today would be incomplete without mention e word, the management plans to tap this new channel of marketing. Its a combination of spiffing up its key brand, researching and improving the newer products that havent taken off, supported with high ad spends that Cadbury hopes will see it emerges stronger after the current slowdown, as well as expand the market.

Positioning: Positioning of few of Cadburys individual product:

1.Cadbury dairy milk: It is their flagship brand. The chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2.5 star: 5 Star is positioned internationally as an energy bar, 3.clairs: Competing in the chewable toffees segment. Re-Launched in 1994 4.Gems: Targeted at children under 12 years with Gems Bond advertising. Cadbury decided to sell it to teenagers with the Smart Very Smart campaign. 5. Crackle: It was the first Cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life.

MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY

Cadburys Market Segment
Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as: 1) Demographic variables : Consumers age groups, gender, incomes, the interests and activities and the utility which consumers look for in a product or on the occasions when the product might be consumed. 2) Product segmentation: Products which are normally consume as a snack and often with tea and coffee, for example Cadburys Perk and snack range. Cadbury has successfully placed itself as a strong confectionary product brand. Cadbury is now marketing and competing with sweets which are bought in festive season.

Turn around marketing of Cadbury in India

It was the market leader in late 80s but sales inched along. It focused firmly on its target segment, but the real buyer lay beyond. For seven long years, Cadburys Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. But the company rejuvenated an old brand to create the marketing megs-hit of the 1990s. Over a period of 12 months, starting February, 1994 , Rs. 314 crores confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. For, it systematically dismantled the franchise that the company had built over 30 years of its flagship brand, Cadburys Dairy Milk (CDM)-Cadburys Milk chocolate until 1986destroying the very fundamental of generic association that had made millions of Indians refer to a bar of a chocolate as a Cadbury.More proof of the chocolate is in the eating: two years into process, CDMs market share at 25%, with sale rising by an average 40% per annum. And again they are successful with their campaigns of kuch meetha ho jayega . They have positioned themselves as a substitute of household product consumed at different occasions like festive occasions and thereby increasing their demand all-round the year.

ANALYSIS & INTERPRETATION

To have a closer view at the market segmentation and positioning of the company we have taken a survey regarding consumers buying behaviour of around 100 people. The response of the people when asked whether they consume Cadbury chocolates is depicted by the following pie chart. By the survey it is clear that almost 98% of the people consume Cadbury chocolates.
2% Yes 98% No

It is clearly visible from the above pie chart that Cadbury dominates the Indian Chocolate market.

81% of the people form the age group of 20-25 purchases Cadbury chocolates.
7% 12% 15-20 21-25 81% 26-30

Thus the company dominates in this age sector. To identify the consumer preference for the brand, we tried to know the reason of their purchase and found out that 73% of the people buy Cadbury because of its taste.
5% 6% 14% 73%

Taste Quality Price Availability

Among different reasons the consumers chose Quality as the primary parameter. We analysed the consumer behaviour with respect to the frequency at which they buy Cadbury chocolates.
5% 1% Frequently Occasionally 39% 55% Rarely Never

Its clearly visible that people buy the Cadbury products on frequent basis thus leading to the high sales of the brand. We rated how customers perceived Cadbury as a brand found that 58% people rated Cadbury as Very Good and 38% as Good.
4% 1% Good 38% 58% Very Good Neutral Bad

Thus Cadbury has established itself as a very strong brand in the Indian market.

On asking reasons for consumption of Cadbury chocolates majority stated that Mood was the primary reasons with a huge percentage of 85%.
5% 1% 9%

Festivals Birthdays

85%

Gifts Mood

When we compared the preferences of the consumer regarding other brands we found that Cadbury was the most preferred brand.
5%0% 5% Cadbury Nestle Amul Others 91%

The final prospective was to know the price suitability for the consumers.

Amul - Reasonable Amul - Expensive Nestle - Reasonable Nestle - Expensive Cadbury - Reasonable Cadbury - Expensive 0% 20% 40% 60% 80%

Series1

Cadbury has dominated the shelf as most reasonable & worthwhile brand.

RECOMMENDATIONS
One new major product launch every year. Maintain dominance in chocolate, confectionery. Increase penetration in the rural market. Improvement in technology in developing countries. As per the suggestions of the respondents Cadbury can introduce smaller and lower priced versions for chocolates like crackle, dairy milk silk. Try and explore the Candy and mouth fresheners market.

CONCLUSION
In this project it is clearly possible to see the success of Cadbury in its endeavours showing the strong future potential for the company. This company project has also demonstrated CADBURYS MARKETING AND COMPETITIVE STRATEGIES that has proved to be extensive through, and of great benefit to the company in furthering its competitive advantage.

BIBLIOGRAPHY
Aaker (1996) Building Strong Brands, The Free Press. Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India Ltd Wikipedia Web site: www.cadburyindia.com Web site: www.Cadbury.uk.com

ANNEXURE
QUESTIONNAIRE
1. Do you buy Cadbury's chocolate? (a) Yes (b) No

2. If yes, then why Cadbury? (a) Taste (c) Price (b) Quality (d) Availability

3. If no, then why not? (a) Price (c) Taste (b) Health conscious (d) Can't say

4. How often do you buy Cadbury's chocolate? (a) Frequently (c) Rarely (b) Occasionally

(d) Never

5. How do you feel about Cadburys chocolate? (a) Good (C) Neutral (b) Very Good (d) Bad

6.On what occasions do you buy Cadbury's chocolate? (a) Festivals (c) Gift (b) Birthdays

(d) Mood

7.Which brand of chocolate do you like most? (a) Cadbury (b) Nestle (c) Amul (d) Others

8.How do you feel regarding price of different brands of chocolate? a. b. c. d. Cadbury-Expensive/Reasonable Nestle - Expensive/Reasonable Amul - Expensive/Reasonable Others - Expensive/Reasonable

9. Has any chocolate ever helped you with any medicinal purposes? Yes No

10. If yes, then how? Hypertension Reduction in weight Chocolate facial Curing heart diseases

10.If any suggestions for the company